Battle over developers’ new homes free for all

David Cameron is set to unveil a package of measures designed to boost the economyReuters/Neil Hall

Coalition ministers were split last night over plans to kick-start the housing market by freeing property developers from their legal duty to build affordable homes.

On the eve of David Cameron’s announcement of a package designed to boost the economy, the Government was divided over whether to drop the rules that require between 25 and 40 per cent of new homes to be within the reach of lower earners.

Nick Clegg, the Deputy Prime Minister, and Eric Pickles, the Communities Secretary, have resisted George Osborne’s plans to drop the policy.

The leading option being considered by the Government would give housebuilders a three-year holiday from the quota rules.

The reprieve could be restricted to areas where building has stalled or to developments of privately rented…